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2023 (1) TMI 820 - AT - Income TaxRevision u/s 263 by CIT - deemed rent on unsold units - HELD THAT:- DR did not dispute the treatment of unsold flats as stock-in- trade by the assessee and also offering as same as business income in the subsequent years. Therefore, following the same the assessment year being 2015-16 [2022 (1) TMI 1041 - ITAT PUNE], we, by holding the amendment brought in by Finance Act, 2017 w.e.f. 01-04-2018 is not applicable and no addition is maintainable on account of deemed rent on unsold flats which is treated as stock-intrade by the assessee. Thus, the order of CIT(A) is not justified and it is set aside. Accordingly, ground Nos. 2, 3 and 4 raised by the assessee are allowed. Provision made for pending work is not an allowable deduction - It is not the case of PCIT that the AO had not enquired into this issue during the course of scrutiny assessment proceedings and no enquiry was made by the AO. The ld. AR argued that the facts and circumstances of the present case are similar to the facts and circumstances in the case of M/s. Rohan Developers [2021 (1) TMI 990 - ITAT PUNE] and vehemently argued that the PCIT had no jurisdiction to exercise power of revision u/s. 263 - DR relied on the order of PCIT. We note that as rightly pointed by the ld. AR that the AO in scrutiny assessment proceedings asked the assessee to submit all the details which is evident from assessment order and it is also not the case of PCIT that the AO did not enquire into the issues relating to the subject of show cause notice to 263 proceedings. On perusal of the impugned order in respect of the issue of provision made for expenses to be incurred in the case of un-finished works which were claimed through profit and loss account is allowable which were made on adhc basis. There was no material placed on record by the PCIT suggesting the provision made for future expenses is disallowable. We find no evidence brought on record by the PCIT that the contingent liability in respect of provision for future expenses is not based on any material. - Decided in favour of assessee.
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